Saab and Studebaker: the failure of car companies.

It looks like the government of Sweden (yes, the nation known for high taxes and cradle-to-gave everything) is going to let Saab die.
Saab, now owned by GM, the recipient of billions in US government bailout money, has basically said it'd rather let it die than subsidize it.
The recently elected right-wing (yes, right wing) leaders of Sweden say Saab can fold up and die for all the government cares:
From the New York Times:
Which makes it all the more wrenching that the Swedish government has responded to Saab’s desperate financial situation by saying, essentially, tough luck. Or, as the enterprise minister, Maud Olofsson, put it recently, “The Swedish state is not prepared to own car factories.”
You can read more at the link below, but you'll have to be registered or you'll have to register with the NYTimes website. It's free. All they ask for is your email address. They promise no to abuse it, and in my years being registered, they haven't. It's worth a read, but caveat emptor.
Sweden Says No to Saving Saab
This story reminds me of the demise of Studebaker in the mid 1960s. The company made good cars at an assembly plant in South Bend, Indiana and another in Canada. Several private investors threw money at it, to no avail. The last Studebaker was built in Hamilton, Ontario in 1966. At no time was a government bailout or handout requested. Studebaker just died.
But then there's Chrysler. In 1979, the company was bleeding money. Chairman Lee Iacocca (the man who came up with the Mustang concept when he was at Ford in the '60s) asked the federal government for a $10 billion loan guarantee, He got it. The loan was paid back, in full, with interest. Chrysler flourished in the following years, making a bundle off its SUVs in the 1990s and early 2000s. Now, it's broke, and getting government handouts, like GM, but notably, not Ford.
My question is this. Should the US be in the car making business? Or should we let free market capitalism do what its apparently doing in Sweden?: